Cheap High Yield Stocks In Terms Of Free Cash Flow Researched By Dividend Yield - Stock, Capital, Investment. High earnings are good but they are nothing worth if the company needs the money for investments, growth or debt reductions. A figure that measures the real income of the company is the free cash flow. The ratio shows the operating cash flow less changes in working capital and capital expenditures.
I screened the market by high yield stocks with a current cheap price to free cash flow ratio of less than 15. Out there are 59 companies with such a high yield and low price ratio but most the results are dominated by stocks with a lower capitalization. That's why I screened only stocks with a market capitalization of more than USD 2 billion. Exactly eleven stocks remained or which seven are recommended to buy.
Here is the full table with some fundamentals:
11 High Yield Stocks With Cheap Free Cash Flow Ratios...
Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 15.84 and forward P/E ratio is 12.84. The dividend yield has a value of 7.67 percent. Price to book ratio is 1.45 and price to sales ratio 0.78. The operating margin amounts to 7.42 percent. The companies are valuated at 8.21 times of free cash flow.
Related stock ticker symbols:
FTE, TEF, PBI, RRD, AV, TI, SLF, HNP, GCI, PAA, SIX